1. Business Copyright 2005 Prentice- Hall, Inc. 9-1

2. 9-2 Chapter 9 Motivating And Leading Employees

3. Business Copyright 2005 Prentice- Hall, Inc. 9-3 Chapter Outline Psychological Contracts In Organizations Psychological Contracts In Organizations Importance of Satisfaction & Morale Importance of Satisfaction & Morale Motivation In The Workplace Motivation In The Workplace Strategies For Enhancing Job Satisfaction & Motivation Strategies For Enhancing Job Satisfaction & Motivation Managerial Styles & Leadership Managerial Styles & Leadership

4. Business Copyright 2005 Prentice- Hall, Inc. 9-4 Psychological Contract Employee’s ContributionsEmployee’s Contributions Organization’s InducementsOrganization’s Inducements Human Relations- Interaction Of Employees With Company And Each OtherHuman Relations- Interaction Of Employees With Company And Each Other –Job Satisfaction/Morale/Turnover – Organizational Success

5. Business Copyright 2005 Prentice- Hall, Inc. 9-5 Trends In Satisfaction & Morale Massive Layoffs/CutbacksMassive Layoffs/Cutbacks Improving Economy Could Mean Reduced MoraleImproving Economy Could Mean Reduced Morale Reinstate BenefitsReinstate Benefits

6. Business Copyright 2005 Prentice- Hall, Inc. 9-6 High Priorities For Today’s Workforce Family Orientation Family Orientation Sense Of Community Sense Of Community Quality Of Life Issues Quality Of Life Issues Volunteerism Volunteerism Autonomy Autonomy Flexibility & Nonconformity Flexibility & Nonconformity Source: TEC- Chief Executives Working Together, “Best Practices: Employee Retention- A Changing Workforce and Workplace”, http://www.teconline.com/www/bestpractices/employee_retention.asp

7. Business Copyright 2005 Prentice- Hall, Inc. 9-7 Compensation & Benefits Importance Source: “Federal Human Capital Survey (2002), Survey of Employees of Federal Government Agencies, http://www.fhcs.opm.gov/fhcsIndex.htm Benefits HighLow

8. Business Copyright 2005 Prentice- Hall, Inc. 9-8 Workplace Motivation Motivation- Forces Affecting People’s BehaviorMotivation- Forces Affecting People’s Behavior Classical Theory/Scientific ManagementClassical Theory/Scientific Management Behavior TheoryBehavior Theory Contemporary Motivational TheoriesContemporary Motivational Theories

9. Business Copyright 2005 Prentice- Hall, Inc. 9-9 Classical Theory Frederick Taylor (1911)Frederick Taylor (1911) More Money = Greater MotivationMore Money = Greater Motivation Efficient Company = Higher Profits & PayEfficient Company = Higher Profits & Pay Time-And-Motion StudyTime-And-Motion Study

10. Business Copyright 2005 Prentice- Hall, Inc. 9-10 Behavior Theory Hawthorne Studies (1925)Hawthorne Studies (1925) Physical Environment Changes Affect Worker OutputPhysical Environment Changes Affect Worker Output Increased Pay =Greater MotivationIncreased Pay =Greater Motivation Hawthorne EffectHawthorne Effect

11. Business Copyright 2005 Prentice- Hall, Inc. 9-11 McGregor Theory (XY) X Y Source Of McGregor’s Selection Of “X & Y” People Orientation Work Orientation Focus Is On People Focus Is The Work

12. Business Copyright 2005 Prentice- Hall, Inc. 9-12 Theories X & Y (1960)

13. Business Copyright 2005 Prentice- Hall, Inc. 9-13 Hierarchy Of Needs (1954)

14. Business Copyright 2005 Prentice- Hall, Inc. 9-14 Two-Factor Theory(1959) Job Satisfaction Depends On Two Factors

15. Business Copyright 2005 Prentice- Hall, Inc. 9-15 Expectancy Theory Victor Vroom (1964)Victor Vroom (1964) People Work Towards RewardsPeople Work Towards Rewards

16. Business Copyright 2005 Prentice- Hall, Inc. 9-16 Equity Theory J. Stacey Adams (1963)J. Stacey Adams (1963) People Evaluate Their Treatment By OrganizationPeople Evaluate Their Treatment By Organization

17. Business Copyright 2005 Prentice- Hall, Inc. 9-17 Reinforcement/Behavior Modification Theory B.F. Skinner (1957)B.F. Skinner (1957) ReinforcementReinforcement –Piecework –Performance = Rewards Punishment = Negative ReinforcementPunishment = Negative Reinforcement

18. Business Copyright 2005 Prentice- Hall, Inc. 9-18 Management By Objectives Peter Drucker (1954)Peter Drucker (1954) Collaborative Goal SettingCollaborative Goal Setting

19. Business Copyright 2005 Prentice- Hall, Inc. 9-19 Recent Management Styles Participative Management Or Employee EmpowermentParticipative Management Or Employee Empowerment –Employees Receive Greater Responsibility –Employees Feel More Committed To Organization Team Management- Employees Given Decision-Making ResponsibilityTeam Management- Employees Given Decision-Making Responsibility Some Employees Frustrated By Increased ResponsibilitySome Employees Frustrated By Increased Responsibility

20. Business Copyright 2005 Prentice- Hall, Inc. 9-20 Job Enrichment/ Job Enlargement Job A Job B Job C

21. Business Copyright 2005 Prentice- Hall, Inc. 9-21 Job Redesign Employee A Employee B Employee A Employee B Task 1 Task 2 Task 3 Task 6 Task 5 Task 4 Task 6 Task 5 Task 4 Task 2 & 3 Task 1

22. Business Copyright 2005 Prentice- Hall, Inc. 9-22 Modified Work Schedules Work-ShareWork-Share FlextimeFlextime Telecommuting/Virtual OfficeTelecommuting/Virtual Office AdvantagesAdvantages –Employee Freedom/Control Of Life –Improves Individual Productivity DisadvantagesDisadvantages –Complex Coordination –Difficult To Keep Accurate Records

23. Business Copyright 2005 Prentice- Hall, Inc. 9-23 Flextime Schedule

24. Business Copyright 2005 Prentice- Hall, Inc. 9-24 Questions For Telecommuters Can I Manage Deadlines?Can I Manage Deadlines? Can I Be Without The Social Context Of The Office?Can I Be Without The Social Context Of The Office? –Networking –Advancement What Will Be The Impact On My Family?What Will Be The Impact On My Family?

25. Business Copyright 2005 Prentice- Hall, Inc. 9-25 Managerial Styles & Leadership Managerial Styles- Patterns Of Management Behavior In Dealing With EmployeesManagerial Styles- Patterns Of Management Behavior In Dealing With Employees Leadership- Motivating Others To WorkLeadership- Motivating Others To Work

26. Business Copyright 2005 Prentice- Hall, Inc. 9-26 Autocratic Style Issue OrdersIssue Orders Expect Them To Be FollowedExpect Them To Be Followed Rapid Decision-MakingRapid Decision-Making

27. Business Copyright 2005 Prentice- Hall, Inc. 9-27 Democratic Style Ask For Input From SubordinatesAsk For Input From Subordinates Retains Final AuthorityRetains Final Authority

28. Business Copyright 2005 Prentice- Hall, Inc. 9-28 Free-Rein Style Manager Is Advisor To SubordinatesManager Is Advisor To Subordinates Subordinates Make DecisionsSubordinates Make Decisions Fosters CreativityFosters Creativity

29. Business Copyright 2005 Prentice- Hall, Inc. 9-29 Contingency Style No Specific Style Used All The TimeNo Specific Style Used All The Time Situation Dictates Manager’s Leadership StyleSituation Dictates Manager’s Leadership Style Different Cultures Have Varying Expectations Of LeadersDifferent Cultures Have Varying Expectations Of Leaders

30. Business Copyright 2005 Prentice- Hall, Inc. 9-30 21 st Century Leadership/Management MotivationMotivation –Money No Longer Prime –Different Desires At Work –Varying Lifestyles Reflect Varying Goals Of Employee LeadershipLeadership –Flatter Organizations = Less Autocratic –Diversity Of Workplace = Diversity Of Leaders –Network Mentality

31. Business Copyright 2005 Prentice- Hall, Inc. 9-31 What Workers Want Most From Work

32. Business Copyright 2005 Prentice- Hall, Inc. 9-32 Federal Workplace Diversity Source: “Federal Human Capital Survey (2002), Survey of Employees of Federal Government Agencies, http://www.fhcs.opm.gov/fhcsIndex.htm